TherapeuticsMD Announces Third Quarter 2023 Financial Results
14 Novembre 2023 - 10:05PM
Business Wire
- Focus remains on cost control to maximize the value of our
royalty assets
- Company announces evaluation of strategic alternatives
TherapeuticsMD, Inc. (“TherapeuticsMD” or the “Company”)
(NASDAQ: TXMD), a company that owns rights to pharmaceutical
royalties, today reported financial results for the third quarter
ended September 30, 2023.
“As the Company continues its transition into a royalty-based
business, we remain committed to cost control to maximize the value
of our royalty assets,” stated Marlan D. Walker, Chief Executive
Officer of TherapeuticsMD.
Third Quarter 2023 Financial Results
Net Loss from Continuing Operations
- Net loss from continuing operations was $1.4 million for the
quarter ended September 30, 2023, or $0.13 per basic and diluted
common share, compared to a net loss from continuing operations of
$14.6 million, or $1.58 per basic and diluted common share, for the
comparable period in 2022.
License and Service Revenues from Continuing
Operations
- License and service revenues from continuing operations, which
are revenues related to license agreements, were $(0.1) million for
the quarter ended September 30, 2023, compared to $0.4 million in
license and service revenue related to sales to another licensee
for the third quarter of 2022.
- Gross royalties totaled $1.2 million and $3.3 million for the
three- and nine-month periods ended September 30, 2023,
respectively, and are recognized in license and service revenues
and other income. Included in these amounts are $0.8 million and
$2.3 million of gross minimum royalty payments due under the Mayne
License Agreement for the three- and nine-month periods ended
September 30, 2023, respectively. The gross minimum royalty
payments were accounted for as fixed consideration at net present
value and allocated to the sale of our licensed products in 2022.
In the current periods, the Company recognizes income only on
amounts in excess of the minimum royalty amounts earned under the
Mayne License Agreement. The Company’s total royalty derived gross
income of $0.4 million and $1.0 million for the three- and
nine-month periods ended September 30, 2023, respectively, was
reduced by approximately $0.4 million in the third quarter due to
product sales adjustments reported by our licensed partners,
resulting in total net royalty income of less than $0.1 million in
the quarter ended September 30, 2023. Our net royalty income
amounts are allocated and reported in license and service revenue
and other income based on the proportion of the sales from each of
our licensed products. Based on sales of licensed products, the
Company recognized approximately ($0.1) million in license and
service revenues and approximately $0.1 million in other income in
the three-month period ended September 30, 2023 relating to
royalties.
Total Operating Expenses from Continuing Operations
- Total operating expenses from continuing operations for the
third quarter of 2023 were approximately $1.7 million, a decrease
of approximately $12.8 million, or approximately 88.2%, compared to
the third quarter of 2022. This decrease was due to the transition
of the Company’s business from a manufacturing and
commercialization business to a royalty-based business with limited
infrastructure.
Company Announces Evaluation of Strategic
Alternatives
- The Company is also evaluating a variety of strategic
alternatives that may include, but not be limited to, an
acquisition, merger, other business combination, sale of assets, or
other strategic transactions involving the Company. Although the
Company is exploring potential strategic alternatives, there can be
no assurance of a transaction, a successful outcome of these
efforts, or the form or timing of any such outcome. The Company has
not set a timetable for completion of this exploration process and
does not intend to disclose further developments unless and until
it is determined that disclosure is appropriate or necessary.
About TherapeuticsMD
TherapeuticsMD was previously a women’s healthcare company with
a mission of creating and commercializing innovative products to
support the lifespan of women from pregnancy prevention through
menopause. In December 2022, the Company changed its business to
become a pharmaceutical royalty company, primarily collecting
royalties from its licensees. The Company is no longer engaging in
research and development or commercial operations.
Forward-Looking Statements
This press release by TherapeuticsMD, Inc. may contain
forward-looking statements. Forward-looking statements may include,
but are not limited to, statements relating to TherapeuticsMD’s
objectives, plans and strategies, including the exploration of
potential strategic alternatives that may include, but are not
limited to, an acquisition, merger, other business combination,
sale of assets, licensing, or other strategic transactions, and the
completion of such a review process as well as statements, other
than historical facts, that address activities, events or
developments that the company intends, expects, projects, believes
or anticipates will or may occur in the future. These statements
are often characterized by terminology such as “believes,” “hopes,”
“may,” “anticipates,” “should,” “intends,” “plans,” “will,”
“expects,” “estimates,” “projects,” “positioned,” “strategy” and
similar expressions and are based on assumptions and assessments
made in light of management’s experience and perception of
historical trends, current conditions, expected future developments
and other factors believed to be appropriate. Forward-looking
statements in this press release are made as of the date of this
press release, and the company undertakes no duty to update or
revise any such statements, whether as a result of new information,
future events or otherwise. Forward-looking statements are not
guarantees of future performance and are subject to risks and
uncertainties, many of which are outside of the company’s control.
Important factors that could cause actual results, developments and
business decisions to differ materially from forward-looking
statements are described in the sections titled “Risk Factors” in
the company’s filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, as well as reports on Form 8-K, and include
the following: whether Mayne Pharma will be successful at
commercializing the products that it licensed and acquired from
TherapeuticsMD; whether the company is successful in winding down
its operations and the costs associated therewith, including the
company’s ability to obtain any additional financing necessary
therefor and any adjustments to the net working capital purchased
as part of the Mayne Pharma transaction; whether the company is
successful in identifying strategic pathways to create additional
shareholder value; the company’s ability to remain listed on
Nasdaq; the impact of product liability lawsuits; the impact of
leadership transitions; and the volatility of the trading price of
the company’s common stock.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231114765105/en/
Marlan D. Walker Chief Executive Officer 561-961-1900
IR@TherapeuticsMD.com
Lisa M. Wilson In-Site Communications, Inc. 212-452-2793
lwilson@insitecony.com
TherapeuticsMD (NASDAQ:TXMD)
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